13/10/2024
WHAT YOU NEED TO KNOW ABOUT ALLEN OYEAMA'S CASE IN USA
So many of us woke up this morning to the news that Allen Onyema is in trouble with the US authorities, and the US authorities are looking for him and Air Peace's chief finance officer, Ejiroghene Eghagha.
What are the issues, and what are the issues that Allen Onyema allegedly did to warrant this humiliation and scrutiny that he is currently facing?
For easy understanding, I will break it down into three parts.
So here we go.
Part 1
Between 2010 and 2018, Onyema travelled frequently to Atlanta, where he opened several personal and business bank accounts. More than $44.9 million was allegedly transferred into his Atlanta-based accounts from foreign sources.
The money was transferred from NGO accounts controlled by Allen Onyema.
By the time Allen started transferring the money in 2010, there was no Air Peace; Air Peace was founded in 2014.
So between 2010 and 2014, Allen Onyema transferred millions of dollars into his US account without any substantial business to back this income up.
But that is not the issue that got him into trouble with the US authorities.
Letâs quickly move to Part 2 of the series.
Part 2
Air Peace was already in existence at that time.
As a smart businessman, Allen wanted to make quick money from foreign exchange transactions, so this is what he did.
He got CBN to give him dollars at the official rate after paying the Naira worth of the dollar he needs, which was $20 million at that time.
The reason why he requested the $20 million was to buy five Boeing aircraft from the manufacturers in the US.
The money was released to him by CBN into his Fidelity bank account, and it was instantly moved to the US.
He wanted to buy the aircraft from a company called Springfield Aviation Company LLC, a business registered in Georgia.
However, the supporting documents were allegedly fake: Springfield Aviation Company LLC was owned by Allen Onyema and managed on his behalf by a person with no connection to the aviation business, and Springfield Aviation never owned the aircraft they purported to sell to Air Peace.
Immediately Springfield Aviation Company LLC, owned by Allen Onyema, got the money; it was sent to his US bank controlled by Allen Onyema, who laundered at the money and sent the money back to Nigeria.
Let me explain what Allen did here.
2016 was a crazy year in Nigeria; it was the year that the dollar was scarce and was also sold higher in the black market.
So businessmen like Allen Onyema that had access collected dollars from CBN at the official rate only to repatriate the money back to Nigeria and then reseller black market rate, which was double of the money spent to buy the dollar.
So you buy a dollar at 200 to $ and then resell it at 400 to $1 without breaking a sweat.
A very cool business at that time that was highly lucrative, which highly connected businessmen at that time did under Buhari only that Allen Onyema was unlucky to be the scape goat.
Even though Allen Onyema was trying to be street smart by doing what he did, moving money around like that and using it for another purpose different from the reason CBN gave it to you is called money laundering in the US and a very big offence in that country.
So in a nutshell, Allen Onyema and his staff committed the offence of money laundering, and this case has been on since 2019.
Seeing that the US government is looking for him and his bank account in the US, which has millions of dollars, was frozen, Allen and his staff committed another offence called obstruction of justice, which is what we would discuss in Part 3.
Part 3
But in a desperate attempt to keep the funds and outsmart the U.S. law enforcement, Mr. Onyema connived with Mrs. Eghagha to create a fraudulent contract, âAircraft Sales and Management Agreement between Springfield Aviation and Air Peace,â in May 2019. They backdated the contract to 2016 to make it seem like the contract existed before the first aircraft purchase.
In May 2019, upon discovering that he was under investigation in the Northern District of Georgia for bank fraud, Onyema and Eghagha allegedly directed the Springfield Aviation manager to sign a key business contract but also specifically told her to not date the document.
In October 2019, Onyema allegedly caused his attorneys to present that same contract, now falsely dated as being signed on May 5, 2016 (prior to the bank fraud that began in 2016), to the government in an effort to stop the investigation and unfreeze his bank accounts.
Mr. Onyema and his staff, Mrs. Eghagha, then gave the fraudulent contract to their lawyer, who, in turn, submitted it to the U.S. Attorneyâs office, where he explained that his clientâs actions were not criminal to warrant a forfeiture of assets.
The act of falsifying documents to prevent forfeiture of the seized funds, according to the grand jury, was deemed a conspiracy to obstruct justice and obstruction of justice.
In essence, Allen and his staff presented a fake document to the US government in order to cover their tracks, which is another entirely new offence.
Investigators found that Mrs. Eghagha sent a mail to Ms. Mayfield to sign the management agreement with a strict instruction stating âdo not date.â
âKindly help, print, and sign the attached document,â Mrs. Eghagha wrote in the mail on May 16, 2019, coping with Mr. Onyema. âDo not date, please.â
âOnce you have signed, kindly scan back to me. Let me know via WhatsApp if you have any questions,â she added in the mail.
Ms. Mayfield did as instructed and resent the scanned contract to Mrs. Eghagha on May 17, 2019.
Mr. Onyema âcaused his attorney J.H. to sendâ the fraudulent contract to the U.S. Attorneyâs office âwith the hopes of resolving the governmentâs concern and bringing the matter to a close.â The Air Peace CEO had intended for the contract to free him of any pending forfeiture proceeding.
The phrase âcaused his attorney J.H.â suggests that Mr. Onyemaâs lawyer may have testified against his client that he was not complicit in submitting forged documents to free his clientâs assets.
It is illegal for a lawyer and his client to knowingly commit fraud, as doing so would nullify attorney-client privilege, thereby activating the crime fraud exception.
The fresh set of charges of obstructing justice and conspiracy to obstruct justice has resurrected what would have otherwise been a cold case of money-laundering against the Air Peace boss.
So in a nutshell
Allen Onyemaâs alleged offences are categorised into 2
1) Money laundry
2) Falsyong documents in order to obstruct justice
That Allen Onyema was a victim of this schoolboy error as a businessman is simply because Air Peace did not have a corporate structure and a robust board of directors in place before the first case of the Money Laundry case happened in 2016.
Because if they do, the board wonât have authorised Allen Onyema to engage in money laundering in order to make a quick profit. No board worry; it's salt would allow the CEO to engage in that kind of unethical transaction.
They could not have authorised him to present false documents in 2019 after he was caught by the US authorities with his hands in the jar.
Apparently, Allen Onyema is the Alpha and Omega of Air Peace, and he is paying the price for this in a big way.
A big lesson for my generation of entrepreneurs: structure your business.
Put proper structure in place. Incorporate sound corporate governance for your business once your revenue crosses $1 million annually.
It is for a reason, and one of them is to avoid the humiliation of seeing your pictures all over the internet as Allen Onyema is currently going through.
Despite owning an airline that flies international routes, Mr. Onyema cannot risk travelling to the U.S. and likely other nations deemed Americaâs allies for fear of being arrested and extradited, as was the case with Internet fraudsters Hushpuppi and Woodberry.
Air Peace is the poster boy of the Nigerian airline business, so this embarrassing story is very bad, and the optics are not good on Air Peace no matter the lens you look at it.
